Lyons: City's 'help' costs senior $2,500

Published: Wednesday, December 12, 2012 at 10:25 p.m.

Last Modified: Wednesday, December 12, 2012 at 10:25 p.m.

Beverly Boganrief got gouged for $2,500 she couldn't afford, and almost lost her home.

And it seems to me it was partly the city's fault, no matter that the city was really trying to help.

“It'll do a number on you when you're a senior and you think you're going to lose your house,” Boganrief told me.

One of the best things the city does is help some financially strapped low-income homeowners with zero-interest home repair loans. Better than zero-interest, really. The loans are paid back only when the home is sold or otherwise vacated, often decades later, when the borrower — one way or another — no longer needs it.

Until that day, some homeowners living on little more than a Social Security check avoid serious maintenance problems and zoning code violations that could force them to move out.

So Boganrief — who prefers not to give her age, aside from saying she's been a senior for a while — was glad to get a $6,000 loan to replace the leaking roof on her little Sarasota home, which the county appraiser values at $50,000.

Without the new roof, her insurance company was going to cancel. And she had no money.

“I live on $1,000 a month,” she said, and her house is not even paid for.

The loan was her salvation, it seemed. But the good news was short lived.

The city arranged to pay the roofer directly when the job was done, and the repair was done quickly. But after the city's loan administrator paid, the contractor died — without paying the company that provided the roofing materials.

There's not usually a death involved, but non-payment issues are not exactly rare in the home repair industry.

The supplier had mailed a certified letter to warn Boganrief of the non-payment, as required, but she was out of town and did not get it. Soon, the company was threatening to foreclose on the lien on her house if she did not pay $2,500.

How the heck was she on the hook?

Well, as many homeowners learn the hard way, Florida law really sides with unpaid suppliers and subcontractors at the expense of homeowners. It might seem it was the supplier's decision to extend credit to the contractor, and that the contractor's LLC or his estate should be the place for the supplier to seek that $2,500. But state law puts the problem in the homeowner's lap.

In Boganrief's case, all the trouble happened because the city goofed, says Dana Watts, a lawyer trying to help Boganrief on the cheap.

A city loan administrator, Jane Hindall, erred by sending the roofer full payment without written confirmation that he had paid all suppliers and subcontractors, Watts says.

With such a document in hand, Boganrief would be in the clear even if the contractor's written assurance was bogus.

Without it, Boganrief had to pay or lose her house.

She paid, but had to borrow money to do it, and she is upset about it. So much for the helpful city loan program.

Hindall says she thought she had all the documents she needed.

“I've never had this happen before,” not once during 17 years, she said. “It's a mess.”

The city does maybe 200 of those loans each year, according to her boss, Don Hadsell.

“This is the first time I've seen this happen in 35 years,” Hadsell says. “It seems to me that, morally, the contractor's estate should pay.”

Well, yeah. But who should pay a lawyer to take a stab at making that happen?

Not the city, Hadsell says, because the city didn't even choose the roofer.

No, but it is city loan administrators — not the low-income families and seniors they help — who are the professionals who are supposed to know about the paperwork.

Hadsell says everyone is sorry, but the city can't cover Boganrief's loss. The loans use federal money. The rules don't allow paying more than a job is worth.

This experience has at least led to a decision that, from now on, final payment won't be sent until contractors provide the documents that Watts says should be routine, Hadsell said.

Good change, but too late for Boganrief. And Watts says if this never happened to a city loan customer before, he is surprised.

“They've been damn lucky.”

Tom Lyons can be contacted at tom.lyons@heraldtribune.com or (941) 361-4964.

<p>Beverly Boganrief got gouged for $2,500 she couldn't afford, and almost lost her home.</p><p>And it seems to me it was partly the city's fault, no matter that the city was really trying to help.</p><p>“It'll do a number on you when you're a senior and you think you're going to lose your house,” Boganrief told me.</p><p>One of the best things the city does is help some financially strapped low-income homeowners with zero-interest home repair loans. Better than zero-interest, really. The loans are paid back only when the home is sold or otherwise vacated, often decades later, when the borrower — one way or another — no longer needs it.</p><p>Until that day, some homeowners living on little more than a Social Security check avoid serious maintenance problems and zoning code violations that could force them to move out.</p><p>So Boganrief — who prefers not to give her age, aside from saying she's been a senior for a while — was glad to get a $6,000 loan to replace the leaking roof on her little Sarasota home, which the county appraiser values at $50,000.</p><p>Without the new roof, her insurance company was going to cancel. And she had no money.</p><p>“I live on $1,000 a month,” she said, and her house is not even paid for. </p><p>The loan was her salvation, it seemed. But the good news was short lived. </p><p>The city arranged to pay the roofer directly when the job was done, and the repair was done quickly. But after the city's loan administrator paid, the contractor died — without paying the company that provided the roofing materials.</p><p>There's not usually a death involved, but non-payment issues are not exactly rare in the home repair industry.</p><p>The supplier had mailed a certified letter to warn Boganrief of the non-payment, as required, but she was out of town and did not get it. Soon, the company was threatening to foreclose on the lien on her house if she did not pay $2,500.</p><p>How the heck was she on the hook?</p><p>Well, as many homeowners learn the hard way, Florida law really sides with unpaid suppliers and subcontractors at the expense of homeowners. It might seem it was the supplier's decision to extend credit to the contractor, and that the contractor's LLC or his estate should be the place for the supplier to seek that $2,500. But state law puts the problem in the homeowner's lap.</p><p>In Boganrief's case, all the trouble happened because the city goofed, says Dana Watts, a lawyer trying to help Boganrief on the cheap.</p><p>A city loan administrator, Jane Hindall, erred by sending the roofer full payment without written confirmation that he had paid all suppliers and subcontractors, Watts says. </p><p>With such a document in hand, Boganrief would be in the clear even if the contractor's written assurance was bogus. </p><p>Without it, Boganrief had to pay or lose her house.</p><p>She paid, but had to borrow money to do it, and she is upset about it. So much for the helpful city loan program.</p><p>Hindall says she thought she had all the documents she needed.</p><p>“I've never had this happen before,” not once during 17 years, she said. “It's a mess.”</p><p>The city does maybe 200 of those loans each year, according to her boss, Don Hadsell.</p><p>“This is the first time I've seen this happen in 35 years,” Hadsell says. “It seems to me that, morally, the contractor's estate should pay.”</p><p>Well, yeah. But who should pay a lawyer to take a stab at making that happen? </p><p>Not the city, Hadsell says, because the city didn't even choose the roofer.</p><p>No, but it is city loan administrators — not the low-income families and seniors they help — who are the professionals who are supposed to know about the paperwork.</p><p>Hadsell says everyone is sorry, but the city can't cover Boganrief's loss. The loans use federal money. The rules don't allow paying more than a job is worth.</p><p>This experience has at least led to a decision that, from now on, final payment won't be sent until contractors provide the documents that Watts says should be routine, Hadsell said.</p><p>Good change, but too late for Boganrief. And Watts says if this never happened to a city loan customer before, he is surprised.</p><p>“They've been damn lucky.”</p><p><I>Tom Lyons can be contacted at tom.lyons@heraldtribune.com or (941) 361-4964.</i></p>